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sweet-ann [11.9K]
2 years ago
5

Matty Kaminsky owns a new Volvo. His June monthly interest is $400. The rate is 8 ½%. Matty's principal balance at the beginning

of June is (use 360 days):
Business
1 answer:
Nesterboy [21]2 years ago
5 0

Answer:

$56,470.59

Explanation:

We need to calculate the principal amount  at the beginning of June

Data:

Interest (I) = $400

Rate(r) = 8.5%

Time(t) = 360 days

Solution:

We can calculate the principal amount by rearranging the Interest calculation formula

Formula: I = Prt

Note; Where P in the formula is the principal amount

Now rearrange the formula in order to find principal

P = I/rt

P = $400/(0.085)x(30/360)

P = $400/(0.085)x(0.08333333333333)

P = $400/(0.00708333333333

P = $56,470.59

Note: we only need to find the principal balance of June so we will consider only 30 days of June out of 360 days.

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Answer:

A) Customer value-based pricing

Explanation:

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Customer value-based pricing uses buyers' perceptions of what a product is worth, not the seller's cost, as the key to pricing.

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6 0
2 years ago
A supermarket uses a periodic review system to manage inventory of gallons of drinking water. Average demand is 152 gallons of w
dem82 [27]

Answer:

The target inventory position is T= 713.6 gallons.

Explanation:

Given:

Average demand =per day = D = 152 Gallons

Standard deviation of demand = σ = 33 Gallons per day

Lead time for delivery = L = 4 days

Z value for 94.5% service level = 1.6

The target inventory position  = (Average demand x Lead time) + Safety stock

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= (152 × 4) + (1.6 × 33 × 2)

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1 year ago
The Tipton Division of Dudley Company reported the following data last year: Return on investment 20 % Minimum required rate of
pashok25 [27]

Answer:

A. $625,000

Explanation:

We know that,

Residual income = Average operating assets × (Return on investment  - Minimum Required Rate of Return)

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$50,000 = Average operating assets × 8%

So, the average operating assets would be

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